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ALRC subcommittee recommends revocation of Fusion Smoke and Spirits' liquor license after raid finds psilocybin and high‑THC products

Alcohol License Review Committee (ALRC) hearing subcommittee · April 10, 2026
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Summary

After testimony and lab reports presented at an April 9 hearing, Madison’s Alcohol License Review Committee subcommittee recommended revocation of Fusion Smoke and Spirits’ liquor license, citing seized psilocybin, multiple THC products that tested above legal thresholds and failures to ensure a licensed operator was on site.

The Alcohol License Review Committee subcommittee recommended revoking the liquor license for Fusion Smoke and Spirits (36 South Bassett St.) on April 9 after city investigators presented lab-confirmed evidence that agents seized kilograms of psilocybin and multiple THC products that tested above Wisconsin’s legal thresholds.

Assistant City Attorney Jennifer Zillavy told the committee that the city had proven the complaint by a preponderance of the evidence and urged immediate revocation. "There is no gray area where the psilocybin is concerned," she said, pointing to crime‑lab confirmations and quantitative testing showing multiple samples exceeded acceptable delta‑9 THC limits.

The city called several witnesses. Special Agent Nicole Zotner of the Division of Alcohol Beverages testified that agents responding to complaints on Oct. 8, 2025, found the store open with a single clerk on duty, social‑media posts showing on‑site alcohol consumption beyond tasting allowances, and, in a back area described as…

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